Average 7.8% growth needed for developed nation tag by 2047

India will need to expand at an average 7.8% annually in real terms to realise its goal of emerging as a developed country by 2047, according to a World Bank report released on Friday. But for this to happen, all growth engines, backed by a sustained reforms push, must perform more optimally, it said.

The economy has grown at a healthy pace of 6.3% since 2000 and quadrupled in size, providing it a strong foundation. But a departure from the business-as-usual approach will now be required to emerge as a high-income country, according to the bank’s India Country Economic Memorandum, titled ‘Becoming a High-Income Economy in a Generation’.

The World Bank has projected a 6.7% growth rate for India for the next two years through FY27.

As many as 13 countries grew at an average of 7% or more for 25 years after the Second World War and six of them went on to become high-income nations, Auguste Tano Kouame, country director (India) at the World Bank, said at the release of the report, adding there is no reason why India can’t grow fast and be a developed country in a generation.

India has macroeconomic stability, demographic dividend, strong reform momentum, a large market and strategic geopolitical opportunities, the report said.

Focus areas
The report calls for boosting productivity, unlocking private investment, leveraging demographic dividend and ensuring better growth parity among states.

For sustained growth, the report suggests four focus areas – increasing investment; fostering an environment to create more and better jobs; promoting structural transformation, trade participation and technology adoption; and enabling states to grow faster and together.